“Ukrtelecom, Ukraine’s largest fixed-line operator, posted an EBITDA profit of more than UAH 700 million in January-June 2023, while its EBITDA margin rose to 27.8%, the company said on Friday.
“Even in the difficult conditions of operating during a full-scale war, Ukrtelecom demonstrates a stable high level of operational efficiency… Based on its results in the first half of the year, Ukrtelecom generated total revenue of more than UAH 2.5 billion,” the telecom operator said in a press release.
A full quarterly report is not yet available, but for the first half of 2022 Ukrtelecom reported an EBITDA margin of 24.3%, which, given the reported total revenue of UAH 2.9 billion, allows the company to estimate EBITDA for that period at UAH 705 million and talk about maintaining this figure in the first half of 2023, despite a decline in total revenue by about 14%.
In the first half of pre-war 2021, the company generated UAH 3.4 billion in total revenue (up 10%), its EBITDA amounted to UAH 1.1 billion (+29%), and its EBITDA margin was 31.3% (+4.5 percentage points).
The press release notes that Ukrtelecom continues to operate, providing access to Internet services at 88% of the number of settlements covered by the operator’s network prior to the full-scale Russian invasion. At the same time, the number of optical Internet subscribers increased by 10% year-on-year to 320,000.
“In the conditions of martial law, the company continues to meet the demand for optical internet connection, accordingly the subscriber base of users connected via optics is increasing,” it said.
In 2023, Ukrtelecom has already built 2.023 thousand km of fiber-optic lines. 80 medical and 82 educational institutions and almost 20 business objects are connected to high-speed optical Internet. In general, as of the beginning of July, more than 1.7 thousand educational and 1.28 thousand medical institutions, as well as 550 territorial communities have fiber optics from Ukrtelecom.
“Despite the difficult economic conditions, Ukrtelecom continues to effectively dispose of the property that is released due to the modernization of technological infrastructure,” the company stressed.
Revenues for the first half of the year from commercial lease of property amounted to UAH 230 million, the statement said.
According to preliminary data, the direct losses of the company from the buildings destroyed in the occupation troops of the Russian Federation, lost equipment, telecom networks and other assets in the temporarily occupied territories amount to about 700 million UAH, and in general, the total devastating consequences of Russian aggression for “Ukrtelecom” are estimated at 2.8 billion UAH, which is mainly due to the economic depreciation of operating assets.
“During the full-scale war, the company lost a number of real estate in temporarily occupied settlements, quite a few buildings are damaged and destroyed by the enemy,” Ukrtelecom pointed out.
The company also reports on reorganization, within the framework of which, in order to increase the efficiency of telecom business, generation of new opportunities for its development, as well as consolidation of responsibility for telecom revenues, a commercial directorate was created, which united the directions of development of corporate and mass segments and inter-operator telecom business.
“The company is implementing new important projects and decisions regarding business improvement and development… The reorganization will unify and increase the efficiency of business processes, introduce new interesting products, as well as methods of sales organization and customer service,” the release said.
It is also said that Ukrtelecom fulfills its obligations to the state, having paid over UAH 750 mln of taxes to budgets of all levels in January-June 2023.
In addition, the company implemented another project on large-scale assistance to the AFU – more than 20 units of the Defense Forces were provided with almost 2.5 thousand special hardware and software. During the full-scale war, the company sent dozens of UAVs, including Valkyrie and Leleka unmanned aerial systems, to the defenders as part of the Steel Front initiative of businessman Rinat Akhmetov. About 65 million hryvnias of financial aid has already been directed to the needs of the defenders, more than 230 cars from the corporate fleet have been handed over.
More than 370 employees of Ukrtelecom are defending the Ukrainian soil in the ranks of the AFU.
PJSC “Production Association “Stalkanat” (Odessa) following the results of work in the first half of the current year reduced net profit by 28.7% compared to the same period last year – up to UAH 164.360 mln.
According to the company’s interim report, net income for this period decreased by 6.9% to UAH 1 billion 574.849 million.
Retained earnings at the end of June 2023 amounted to UAH 340.116 million.
As reported, “Stalkanat” in January-March this year increased net profit by 2.2 times compared to the same period last year – to UAH 77.304 million, reducing net income by 3.2% – to UAH 701.047 million.
“Stalkanat” in 2022 received a net profit of 325.073 million UAH, while 2021 ended with a net loss of 309 thousand UAH. Net income in 2022 amounted to UAH 3 billion 227.799 million, while in 2021 it was not, as the company at that time was in the process of creation due to the spin-off from PJSC “Stalkanat-Silur”.
The average number of employees of the enterprise for 2022 – 916 people, for 2021 – 16 people.
General meeting of shareholders held on September 3, 2021 decided to separate from PJSC PO “Stalkanat-Silur” and create a new company – PJSC “Stalkanat” with the transfer of part of property, rights and obligations to it according to the approved distribution balance sheet. The assets of PJSC “Stalkanat” were based on the distribution balance sheet and the acceptance act dated December 31, 2021.
The Company was incorporated on December 6, 2021.
PJSC PO Stalkanat-Silur (Odessa) previously had two branches – in Odessa and in Khartsyzsk, Donetsk region at NKT. On December 1, 2016, the management of the company officially notified about the shutdown of the company’s branch in Khartsyzsk – the relevant announcement was published in the newspaper “Uryadovyi Kurier”. Later, the management of PJSC PO Stalkanat-Silur announced the seizure of the company’s branch in Khartsyzsk at NKT, sent a corresponding statement to the National Police.
According to the company’s data as of the end of 2022, David Nemirovsky (Ukraine) holds 50.0001% of shares of PJSC “Stalkanat”, Anton Mikhalenko – 23.7%, Edery Liron (both – Israel) – 23.1%, Vitaliy Dubovich (Ukraine) – 3.1999%.
The authorized capital of PJSC “Stalkanat” is UAH 17.736 mln, nominal value of one share is UAH 0.17.
The profit of state-owned Ukreximbank for the first half of 2023 amounted to UAH 1.976 billion, while the same period of 2022 the bank ended with a net loss of UAH 2.537 billion.
“June’s net profit of UAH 440 million allowed Ukreximbank to complete the first half of 2023 with a profit of UAH 1.976 billion. For the same period of 2021, the Bank earned for the state UAH 1.1 billion,” the bank reported on Friday.
It is indicated that interest income generated by the working loan portfolio of the bank takes the main part in the structure of income.
In addition, the bank managed to settle NPL for UAH 670 million, the release said.
Ukrexim said that in the second half of 2023 it intends to increase lending to the economy, offering long-term resources under MFI programs, including grant and compensation components, as well as to support cities and communities in the restoration of infrastructure
“Ukreximbank will continue to fulfill its specialized role in Ukraine’s banking system – strengthening exports, improving the efficiency of imports, financing strategic sectors of the economy,” the state bank stressed.
According to the National Bank of Ukraine, as of June 1, 2023, Ukreximbank ranked 3rd in terms of assets (UAH 274.04 billion) among 65 banks operating in the country. As of July 1, the network of the state bank has 48 branches across the country.
Agro-industrial group of companies “Ovostar Union”, one of the leading producers of eggs and egg products in Ukraine, decided to direct all net profit for 2022 in the amount of $6.087 million to the reserve of retained earnings and not to pay dividends.
According to the company’s announcement on the Warsaw Stock Exchange before the opening of trading on Monday, the relevant decision was made by the shareholders’ meeting on July 14.
At the same time, it approved the payment of an interim dividend for 2022 for EUR3.9m, which had already been made in January this year.
Other decisions of the meeting include fixing the ceiling of total remuneration to the board of directors this year at EUR0.5m and authorizing the board of directors to select an independent auditor in a tender.
Ovostar Union Group is a vertically integrated public holding company, one of the leading producers of chicken eggs and egg products in Europe. The producer has been a certified exporter to the EU since 2015.
The group’s holding company, Ovostar Union N.V., IPOed 25% of its shares on the Warsaw Stock Exchange in mid-June 2011 at PLN62 per share and raised $33.05 million.
On Monday, the company’s shares are listed at PLN58.5, down 1.68% since the beginning of the day. A total of 6 million shares were issued.
“Ovostar earned $8.98 million in net profit in the first quarter of 2023, while it ended the same period last year with a net loss of $16.44 million. Its revenue for the period increased by 70.7% to $47.30 million.”
Ovostar ended 2022 with a $6.09 million net profit, a 3.7 times increase from 2021. Its revenue for the past year increased 1.7% to $135.63 million.
According to the report, by the end of March 2023, Ovostar’s majority shareholder was Prime One Capital Limited – 67.93% controlled by Ovostar CEO Boris Belikov and Chairman Vitaliy Veresenko; Generali Otwarty Fundusz Emerytalny – 10.93%, Fairfax Financial Holdings Limited – 9.09% and Aviva Otwarty Fundusz Emerytalny – 5.02%.
Naftogaz Ukrainy, the parent company of Naftogaz Group, made a net profit of UAH 7.7 billion in the first quarter of 2023 against a net loss of UAH 24.6 billion in the same period last year, the company said in a press release on Tuesday.
“This result was possible due to a significant improvement in the financial performance of the group’s key enterprises compared to the first quarter of 2022,” said Naftogaz Group head Oleksiy Chernyshev, whose words are quoted in the report.
At the same time, the consolidated loss at the end of January-March 2023 amounted to UAH 1.395 billion against UAH 57.579 billion for the same period last year. Consolidated income from sales decreased by 23.1% (by UAH 20.626 billion) to UAH 68.54 billion. Gross consolidated loss amounted to UAH 12.097 billion against UAH 34.156 billion in the first quarter of 2022.
According to data reflected in the consolidated financial statements of Naftogaz Group for January-March 2023, the group’s consolidated operating profit in the period amounted to UAH 3.42 billion, while in the first quarter of last year the group had a consolidated operating loss of UAH 57.032 billion.
“The generation of operating profit is an important indicator of business consistency. This is a significant achievement, given the war and the starting positions from which we started work,” Chernyshev emphasized.
As explained in Naftogaz, the statements also show that the main reportable segments of the group showed net operating profit for the first quarter of 2023.
“The group’s enterprises that ensure fulfillment of special obligations (SOO, provision on special obligations – IF), supplying natural gas to socially sensitive categories of consumers, also significantly improved the level of cash collection for gas supplied,” the press release said.
This allowed the enterprises to significantly improve the operating financial result: losses in the mentioned reporting period amounted to only UAH 6.3 billion compared to UAH 33 billion of losses in the first quarter of 2022, the report said.
“It should also be added that during January-March 2023 to the consolidated budget of Ukraine enterprises of Naftogaz group paid taxes in the amount of UAH 26 billion, which is more than 7% of all tax revenues of the state for the corresponding period”, – added in the company.
At the same time, in April 2023, the group successfully completed the 2022/2023 heating season under the PCP without receiving any additional funding from the state.
“Moreover, even without additional support, the group not only retains, but increases the production of Ukrainian gas under war conditions,” Naftogaz noted.
Glass packaging manufacturer “Verallia Ukraine” (village Zarya, Rivne region), a subsidiary of French Verallia, in January-March this year received a net profit of 91.06 million UAH against a loss of 84.64 million UAH for the same period in 2022.
According to the company’s quarterly report released Tuesday in the National Securities and Stock Market Commission’s (NSSMC) information disclosure system, the company’s net income rose 46.5 percent to UAH 636.04 million.
“During the first quarter of 2023, Verallia Ukraine continued its core business despite the martial law, mobilization of a significant number of employees and active hostilities in the country, and did not lose its position in the glassware market in Ukraine. In particular, in the first quarter it began to gradually increase the number of products manufactured,” the company noted.
According to the report, the gross profit of the company for the specified reporting period amounted to 201.7 million UAH against a loss of 42.61 million UAH in the first quarter of 2022, while operating profit was 164.31 million UAH (a loss of 67.81 million UAH).
PJSC “Verallia Ukraine” produces glass containers for alcoholic beverages and food, the company employs over 480 people.
The immediate parent company is German Verallia Deutschland, while the actual control is exercised by Verallia Packading.
According to the company’s website, in early April of this year, thanks to partners and the Verallia Group, it restarted a furnace that had been in continuous operation since 2016, but was controlled shut down in February 2022 with the start of a full-scale war.
“After the refurbishment of the glass shop, production was started with orders for key customers such as Nemiroff, Bayadera and Lutskfoods. We see that the Ukrainian market began to recover, and our partners are in urgent need of high-quality glass, so we restore production of the Selective Line premium line and positions of larger sizes, up to 1.75 liters,” – noted in a statement on the website.
According to Verallia Ukraine’s annual report on the company’s website, last year it posted a loss of UAH 37.21 million against a net profit of UAH 19.13 million a year earlier, with net income up 16% to UAH 2 billion.
Verallia Group, according to its website, is a European leader and the world’s third largest producer of glass packaging for beverages and food. It has 34 glass factories, five plants for the production of décor and 12 centers for processing of glass cullet (glass products) in 12 countries, annually produces 17 billion glass bottles and cans for delivery to 10 thousand companies – from local family-owned manufacturers to large international brands.
